Republicans have been open about their opposition to any nominee, saying that they first want changes at the CFPB. They maintain the Bureau has far too much power and too little accountability.
But U.S. Senator Kay Hagan believes Cordray is a good fit, and says the CFPB needs to be an independent watchdog to protect consumers from some of the abusive lending and mortgages practices that led to the financial crisis. On the Huffington Post’s website, Hagan writes:
“As a State Senator, I remember witnessing the effects payday lenders had on thousands of North Carolina families — trapping them in endless, long-term debt that forced many of them to declare bankruptcy. It took considerable effort to put a stop to this practice in our state.
And we need a strong CFPB Director to rein in the predatory lenders who continue to prey on American families across the country.
Richard Cordray would be a strong director for the CFPB. He has a long history of fighting to protect consumers in Ohio, and he’d be in position to do the same for the American people as the head of the CFPB.”
Until a director is in place, the CFPB does not have the authority to investigate or oversee nonbank lenders, payday lenders, debt collectors and other questionable financial practices.
So now that the Senate has blocked the nomination, what’s next?
President Obama has hinted Cordray may still get the nod to lead the agency, as a recess appointment.